Exercise 17-9 Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 52 range instruments and 303 pressure gauges were produced, and overhead costs of $86,170 were estimated. An analysis of estimated overhead costs reveals the following activities.

Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $40,000 2. Machine setups Number of setups 26,010 3. Quality inspections Number of inspections 20,160 TOTAL: $86,170

The cost driver volume for each product was as follows.

Cost Drivers Instruments Gauges Total Number of requisitions 405 595 1,000 Number of setups 195 315 510 Number of inspections 255 225 480

Determine the overhead rate for each activity.

Overhead Rate Materials handling $ Machine setups $ Quality inspections $